IPCC releases a new report on climate change: Positive for iodine

Intergovernmental Panel on Climate Change (UN IPCC) has released a new, updated report on climate change. Previous report was issued in 2013 and was quite grim by itself. But current is just apocalyptic! 

It is scientifically proven that Humanity won't be able to meet targets of the Paris Agreement. A report has five scenarios, all of them showing that 1.5'C temperature rise will happen by 2040, much before 2100. And with current greenhouse gases emission levels this level will be reached even by 2030, and up to 5.7'C rise by 2100!

Scared? Yes, you should be! But how all this will affect an iodine market? 

First, we should remember that iodine consumption trend is bullish. World requires more and more iodine, but supply rise is mostly covered by the use of oil processed water as a source for iodine. Manufacturers are working on upgrading the technology of air adsorption (Ad) getting more and more iodine out of the water. 

But let's think one step ahead, what will happen to the water supply when the world speeds up the transition from fossil fuels to the carbon friendly sources? Though oil won't be substituted completely, a mix of carbon tax measures, fuel efficiency and environmental regulations will cause dramatic drop in oil production soon, and first of all in an areas with high net costs (i.e. Oklahoma in the US). 

No oil means no water supply, and no water means no iodine! Simple as it is.

What should be done to mitigate this risk? First, we all need a technology update raising iodine extraction efficiency. With all the updates we are still using as a baseline an old technology known for almost eighty years. 

Second, creation by the Government of a large strategic iodine reserve for future use. It's a question of national security. (Lifehack: As a commodity iodine might soon be even better investment than any crypto currency.) 

Third, water reserve or investment in iodine water wells (like the ones IOCHEM is using). 

Overall, we are heading towards an interesting times: deadly for ones and lucrative for the others. Adjust your investment portfolio, folks!